Will Renters Ruin Your Retirement?

This is a problem no one in our 46-year established community expected to have, but it showed up suddenly and badly. Even with large, heavily wooded lots, one decision to rent short term resulted in excessive short term renters (even exceeding septic limitations), loud overnight parties, and renters angrily refusing to cooperate. Even calls to the sheriff had minimal results. Our community is now embroiled in costly and devisive efforts to limit or eliminate the concern. For our part, we are far separate from that major disruption, but long-term renters next to us have breached our peace and quiet and allowed their dog to run free threatening wildlife and peace. We are on the fringes of the Research Triangle area of NC which, while not a resort, is a burgeoning tourist area. We had thought renting out our home or mil apartment might be a source of income , but no longer. Unscrupulous or uncaring investors can seriously impact a quiet community.

In our 55+ condo community in SE Florida, rentals of six months or less have never been allowed. And if the renter leaves before the six months has ended, the owner is not allowed back in until the end of the six month period. This is to prevent the owner from beginning a six month lease with the intent that the tenant will only stay a week or so. Consequently, we don’t have an issue with short-term rentals and tenants. As the article indicates, due diligence about rentals in the community you’re considering is essential to avoid the issue of short-term rentals spoiling your peace and quiet. Of course, some buyers want to make sure short-term rentals are available, because they want the rental income when they’re away, Many choices for what your needs are, but know before you buy. A lot of buyers receive the HOA rules before closing, but never read them or have a lawyer review them. Not a good idea if you want to avoid unpleasant surprises.

I live in a town that is a tourist destination. There are many STRs in our town; one is next door to me and the house across the street will soon be one. Our residents tried to put a cap on the number - a committee was formed, many hours went into coming up with a reasonable plan, several meetings were held. But the very short-sighted town council made no move to limit the numbers. Now it seems nearly every house being purchased becomes a STR. It is not pleasant for those of us who live near them. There are constantly new people in and out and it prevents the sense of community we seek. I will leave this area as soon as I can figure out how and where, and I will not be moving to a tourist destination. I've learned my lesson.

Jes, that is very helpful information; what area/region do you live?

Welcome to Arizona with no local municipality control over short term rentals thanks to Gov. Ducey. Once again property prices have soared like the last real estate bubble but “this time it’s different” thinking continues. We own two non HOA properties in tourist destinations and they are being snapped up by short term rental buyers. Paradise Valley has an ordinance against timeshares which also destroy neighborhoods. Pacasa was scouting properties recently in our community but now claims “at this time” to look elsewhere. “Homes not hotels” is a forum where residents in Scottsdale recount their hellish experiences with short term rentals. In Sedona, the local population dropped below 10,000 resulting in different local government interface. Very few long term rentals are available and vital community jobs are open without workers living nearby (nearby Cottonwood rent rates are up dramatically.) The municipalities are trying to get owners to register their rentals to collect the correct taxes. Crime rates and police calls increase disproportionately in short term rental areas. Who cares about the white van staking out the neighbor’s home? Just another service van for a house where you don’t know who lives there? A thief can search “short term rentals near me” and find a bunch of short term rentals and target your neighborhood. And, as others mention, lobbyists for the short term rental industry claim they are just helping mom and pop survive and keep their family home. Marriott just entered the market. Don’t kid yourself. This is a business and not about individual homeowners rights. It’s a mess and hopefully the next Governor and State legislature will reverse the statute.

Sally - Beaufort, SC

As has been noted, this is a problem affecting many, many communities. Most communities with HOAs have limits on short-term rentals in their documents, but those that do not are often over-run with them, particularly if they are close to the beach, a major city, or other desirable attractions.
In Sedona, Arizona (Arizona has very friendly short-term rental laws), it's severely affected the community: "In 2019, the school district closed one of three elementary schools. The high school
graduating class is down to about 50 students, about one-half of what it was five or six years
ago. The district has now added 7th and 8th grades to the high school so the building can be
fully utilized. Little league baseball and football programs are no longer organized because
young families are leaving the city."
This is the future if this trend continues unabated. This is what happens when local control is removed, and this is the thrust of many laws that have been proposed.
Read this: http://blogs.mml.org/wp/short-term-rentals/files/2021/06/STR-White-Paper-The-Negative-Consequences-of-Short-Term-Rentals-Arizonas-Recipe-for-Disaster.pdf
You need to question your local representatives about their stance, and show up at meetings and protest the proliferation of short-term rentals. Be sure to read any HOA documents, and ensure they are clearly spelled out. Many people (and I'm one of them) wanted a community that is just that - a community - and not rotating groups of nightly or weekly groups without ties to the community.
And, check your governing documents if your community has them. They can be changed, but it’s difficult, because you need a lot of votes to overturn existing documents.
Jan Cullinane, author, The New Retirement: The Ultimate Guide to the Rest of Your Life, 3rd edition (Wiley, May 2022)

Short term renters can definitely be an occasional problem. We had someone rent our unit and used it to host a big wedding party at the condo pool - we found big chafing dishes in the closet! Neighbors complained about the music.
The worst offenders come home drunk and then continue to have a loud party when they return, slopping their drinks in the elevator.
In our condo association you cannot rent for less than a week, and even then you have to have a transient license from the town. I cannot imagine the chaos if one or two night stays were permitted.
That said, my wife and I often stay at Airbnb or VRBO properties and really love most of them. And most renters are very pleasant and well behaved. The few bad apples create big problems.

We like to leave our SE TN home and rent for the month of February near Venice FL, to enjoy the beaches. Most of the developments require a 3 month minumum. Due to my health issues, a 3 month stay is impossible. I'm not certain if it is an ordinance or just a preference of the various developments. If anyone knows of rentals in that area by the month.....please let me know whom to contact. We have been homeowners in tourist areas all of our lives, and wouldn't dream of causing a raukus! We always try to leave a rental better than we find it. Thank you kindly.